Malcolm Walker, the veteran founder of frozen food chain Iceland will regain control of the company after a GBP50m buyout, which comes with millions of pounds slashed from the purchase price. According to Sky News, the South African conglomerate Brait has reached a deal with Walker which allows the latter to pay the remaining two instalments of a GBP115m fee ahead of schedule. Iceland’s founder was forced to stand down in 2001, as it was revealed that he had sold GBP13.5 million worth of Iceland shares just five weeks before the company released the first of several profits warnings.
Under a deal announced in June, Brait said it would offload its 63% stake in Iceland to Mr Walker, who founded the business exactly 50 years ago, and Iceland’s chief executive, Tarsem Dhaliwal. After an initial payment of GBP60m, the schedule stated payments of GBP26.9m due on July 30 next year, and GBP28.1m 12 months later. “NewCo may settle the deferred payments in full, or in part, at any time on or before these payment dates, in which case a rebate for early repayment shall be applied,” a statement in June said.
The British media outlet said the two sides had agreed to settle the full sum now, with a discount of roughly GBP5m to the overall purchase.
Iceland operates almost 1.000 stores in the UK, but has seen competition in recent years from discounters such as Lidl or Aldi.